Businesses hail lower power rates

By Ted Aldwin Ong

The Iloilo business sector hailed the announcement of MORE Electric and Power Corp. (MORE Power), the power distributor in Iloilo City, that electricity rates will go down across all consumer categories in the July 2021 billing cycle.

Business enterprises are commercial consumers, and they are expecting a P3.31/kWh decrease.

According to MORE Power, commercial consumers were billed at P9.49/kWh last month, but once the reduction takes effect this July, business enterprises will have a P6.18/kWh rate.

The rate reduction relayed a positive signal to the local business industry who are suffering from the impacts of an ongoing pandemic.

Based on latest data from MORE Power, it now serves 82, 854 residential consumers and 2,740 commercial consumers.

 

RELIEF IN TIMES OF PANDEMIC

“This is a welcome relief especially in this time of pandemic,” said Engr. Terence Uygongco, chairperson of the Iloilo Economic Development Foundation (ILEDF).

For Uygongco, lower power means lower cost of production and it can spur investments to Iloilo City.

“Lower power rates would mean lower production cost for businesses and lower expenses for residential customers and a welcome relief for all consumers especially during this time of pandemic,” he added.

Since 2010, ILEDF has been advocating for the upgrade and modernization of electric power distribution utility with systems that improve network reliability and provide better customer service to Iloilo City residents.

“The lower power rate could definitely help in attracting more investments,” Engr. Uygongco said.

The rate reduction was likewise well-received by the Iloilo Business Club (IBC).

“Indeed, this is great news,” expressed Lea Lara, executive director of IBC, underscoring that “every savings counts for residents and for business at this time of the pandemic.”

Lara emphasized that lower cost of electricity is a good economic recovery strategy for Iloilo and it can make Iloilo City competitive as an investment area once the economy starts to recover.”

But apart from the benefits derived by the business sector, Lara pointed out that reduced rates will give necessary relief to households, especially working parents who have to cover the cost of increased electricity consumption as a result of the pandemic.

“Let’s also think of the spike in residential consumption,” she said, “because many working parents were on a work from home arrangement and with their children taking up online classes.”

“I’m aware that parents are not receiving allowances for work-related electricity use from employers,” Lara expounded.

MORE Power explained that residential consumers are the big gainers of reduced power rates in July 2021 and in the next six months.

The power utility also received praise from the Philippine Chamber of Commerce and Industry (PCCI Iloilo Chapter).

“We certainly laud and welcome this development, especially during this prolonged pandemic when every centavo counts,” PCCI Iloilo Chapter president Jobert Peñaflorida said.

Peñaflorida also recognized “MORE Power’s earnest efforts to enhance both its infrastructure and services for improved efficiency and consistency of service” and for this reason he emphasized that “it may require quite some time to minimize power interruptions.”

PCCI Iloilo Chapter expressed confidence that “MORE Power can achieve its objective of providing Iloilo City with an affordable, reliable and efficient power supply.”

MORE Power is a member of both ILEDF and PCCI Iloilo Chapter.Businessman Allan Tan of Hotel Del Rio said the successive rate decrease resulted in better income for their business.

“Thank you sa electricity savings! For the 1st time, positive income lahat ng hotels,” Tan added.

Natalie Lim, general manager of Richmonde Hotel Iloilo, echoed Tan’s statement.

“I have never seen a 6-digit electricity bill. At the height of the pandemic last year, our bill was 7-digit,” expressed Natalie Lim, general manager of Richmonde Hotel Iloilo.

“As a business enterprise that was badly hit by the pandemic and continues to grapple through it, the reduction is a big relief for power is one of our biggest operational cost,” Lim added.

 

BIG TO SMALL BUSINESSES HOPE LOW RATES TO STAY

Business owners were also enthusiastic after learning that power rates will go down.

“For ordinary citizens and business owners like myself, the lowering of power rates is something that is unexpected. I didn’t even know that it was possible,” shared Aurelio Servando who owns the Kansi House located in Jaro district.

“This is a timely help for us with the ongoing pandemic,” Servando said, as he expressed hopes that the reduced rates will not encounter drawbacks later.

The Kansi House owner roughly estimated a reduction of around P3,000 on his forthcoming power bill citing the computation of MORE Power.

Small and informal business owners like Sol Gomez, who operates a sari-sari store in one of the barangays in Molo district, took a deep breath as she looks forward to seeing her monthly power bill with MORE Power’s promise of reduced rates.

“We are really making an effort to maintain our electricity use both for the store and for the household at affordable levels all these years,” Gomez said.

Apart from lighting, Gomez’s sari-sari store uses a refrigerator for cold beverages.

Gomez believes that these are not power intensive appliances yet a power rate reduction of more than P3/kWh is something that she considered significant for it means budget for food or savings for the family.

“I’m hoping that the reduction is real and it will remain at that level,” she uttered.

 

THIRD ROUND OF REDUCTION

The rate reduction this July is the third since MORE Power took over operations from the former service provider at the onset of the pandemic lockdown in March 2020.

In April 2020, or one month after the take-over, MORE Power announced a P0.74 centavos/kWh reduction for consumers bringing down the P10.35/kWh residential rate to P9.61/kWh.

MORE Power inaugurated and activated its 69-kV transmission switching station in Barangay Banuyao, La Paz on May 26 this year. The facility completed its reconnection to the Visayas grid and also linked its substations to the National Grid Corp. of the Philippines’ (NGCP) substation in Sta. Barbara, Iloilo.

The reconnection to the Visayas grid allowed MORE Power to reconfigure its power supply to a legally mandated cheaper option to benefit consumers resulting in a second reduction for consumers.

MORE Power reported then that the move pulled down rates from P10.277/kWh in April to 9.726/kWh in May, or a P0.551/kWh decrease for residential consumers.

The second reduction also slashed the rate for commercial consumers by P0.4610/kWh or from P9.703 (April) to P9.2412 (May).

The rate reduction this July is the third and the biggest drop for consumers. It will bring down the residential rate from P10.0149/kWh last June to P6.4562/kWh in July, a P3.55/kWh decrease.

The commercial rate also went down from P9.2412 to P6.1809.